VIRGINIA BEACH, Va., Jan. 04, 2019 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (AHH) announced today that it has closed on the previously announced sale of the new build-to-suit distribution facility in Richmond, Virginia for $25.9 million.
The Company completed construction of the 220,000 square foot facility in the fourth quarter of 2018. The building is leased to a wholly-owned subsidiary of PepsiCo. The sale closed during the fourth quarter of 2018 at a profit of over 15% based on total development and construction costs. The gain recognized on the sale was within the range of the Company’s 2018 Normalized FFO guidance assumptions.
“It’s impressive to contemplate that we successfully negotiated the lease, financed the project, developed the raw site, constructed the facility, and sold the finished product…all in less than a year’s time,” said Louis Haddad, President and Chief Executive Officer of Armada Hoffler Properties. “In our negotiations with the client, we offered a menu of options afforded by our integrated business model: fee construction and development, build-to-suit purchase, or the long-term lease that was ultimately chosen. As a result of this approach, our profit on the sale is more than double what we would have earned had we simply built the project for market fees, providing further evidence of the advantages of our unique cross-selling platform.”
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer and Treasurer
Phone: (757) 366-6684